The price variance is calculated as follows: (Actual Price ? Standard Price) × Actual Quantity. The purchase price variance is calculated using all of the units purchased, not just the units that are put into production. See the correct answer for a complete explanation.
The price variance is calculated as follows: (Actual Price ? Standard Price) × Actual Quantity. The purchase price variance is calculated using all of the units purchased, not just the units that are put into production. The purchase price variance is $135 unfavorable [($0.75 ? $0.72) × 4,500]. The actual price exceeds the standard, thus, the variance is unfavorable.
The price variance is calculated as follows: (Actual Price ? Standard Price) × Actual Quantity. The purchase price variance is calculated using all of the units purchased, not just the units that are put into production. See the correct answer for a complete explanation.
The price variance is calculated as follows: (Actual Price ? Standard Price) × Actual Quantity. The purchase price variance is calculated using all of the units purchased (4,500), not just the units that are put into production (4,100). See the correct answer for a complete explanation.
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